The world economy slows as trade frictions, debt burdens, and weak demand expose fragile spots across regions.
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Growth Stuck Below Normal
Global growth for 2025 is projected around 2.8%, the same as last year. This remains well below pre-pandemic averages, showing a sluggish recovery with few signs of strong momentum.
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Trade Frictions Bite
Ongoing tariff battles and trade restrictions, especially between major powers, continue to weigh heavily on global commerce and disrupt supply chains.
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China’s Slowdown Deepens
The world’s second-largest economy is losing steam as consumer spending weakens, factories cut production, and confidence slips among businesses and households.
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Old Capacity Phased Out
Outdated and inefficient industrial plants in China are being shut down. The goal is to prevent a flood of low-priced goods, but closures add pressure on jobs and output.
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Debt Burden Rises
Many developing nations are trapped by mounting debt and limited investment flows. Rising interest costs strain budgets, leaving little room for growth-friendly spending.
Price pressures remain elevated in several regions, fueled by financial tightening. Families face rising living costs, while central banks balance inflation with growth risks.
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Forecasts Cut Again
Global growth outlooks are being revised downward due to geopolitical tensions, climate disruptions, and trade barriers, further clouding the recovery path.
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Recession Warning Signs
Analysts warn growth could slip near 2.3%, a level close to global recession, if current trends persist. Fragile economies are especially vulnerable.
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Policy Uncertainty Hurts
Unclear government policies, regulatory shifts, and delays in approvals are undermining business confidence, slowing investments in key markets.
Advanced economies face stagnation, while parts of Asia continue to expand more quickly. This widening gap is reshaping trade and investment flows.
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Exports Under Pressure
Exports to major consumer markets are falling, especially for Asian manufacturers, as tariffs, reduced demand, and shifting supply chains take their toll.
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Path Forward
Avoiding a deeper slump will require bold reforms: boosting productivity, diversifying industries, investing in green energy, and strengthening infrastructure.